SOURCE: Sabina Silver Corporation

August 29, 2006 11:16 ET

Sabina's New Discovery Grades Up to 114 Oz/Ton Silver, O.57 Oz/Ton Gold -- Drilling Commences at Del Norte Project, Stewart-Eskay Creek Area

LONDON, ON -- (MARKET WIRE) -- August 29, 2006 -- Sabina Silver Corporation (TSX-V: SBB) is pleased to announce the commencement of the 2006 diamond drilling program on the Del Norte property, situated in the Stewart-Eskay Creek Mining District, British Columbia, and to present highlights from initial 2006 surface sampling, including discovery of the brand new "SP" Vein grading up to 3910 g/t (114 oz/ton) silver and 19.5 g/t (0.57 oz/t) gold.

Planned program highlights are as follows:

* Stepout and build a resource around Hole #2005-2 within the LG and K-Zone
vein system, which intersected 15.9m/51ft grading 0.363 oz/ton gold
equivalent in 2005 with a core of bonanza grade silver and gold values
grading 3781g/t (110.3 oz/ton) silver and 71.31g/t (2.08 oz/ton) gold over
.875m/2.8 ft.
* Drill test an intense, broad EM conductor which has been detected east
and parallel to the LG vein exposure, situated within laminated mudstones.
The setting is prospective for exhalative Eskay Creek-style mineralization
in the wall of the main vein system.
* Drill test a variety of additional surface gold-silver rich occurrences,
located and resampled on the Del Norte Property during the current, 2006
exploration campaign.
The Company plans a minimum of 3100m/10,000ft of diamond drilling at Del Norte in 2006. This is in addition to a comprehensive mapping and surface sampling program which has been underway at Del Norte since mid-July.

A total of 4600 feet in 10 holes were completed at Del Norte during 2005. The program was funded by Sabina according to terms of an option agreement with Teuton Resources Inc. (TSX-V: TUO), whereby Sabina Silver can earn up to a 65% interest by spending $2.5 million on the property over four years and taking the project to feasibility stage (previously reported October 3, 2005).

Surface Mapping and Sampling

Six showings have been identified and sampled thus far during the 2006 campaign. Surface sample results to date from the various showing area include:

1) "3 oz" Vein with surface grab sample assays from trace to 29.65g/t (0.86
oz/t) gold and from trace to 176g/t (5.13 oz/t) silver*;
2) Bullion Area with surface grab samples from trace to 21.2g/t gold (0.62
oz/t gold) and from trace to 1520g/t (44.3 oz/t) silver;
3) Crackle Zone with surface grab samples from trace to 9.47g/t (0.27 oz/t)
gold and from trace to 2630g/t (76.7 oz/t) silver;
4) K-Zone/LG Vein area with surface grab samples from trace to 8.86g/t
(0.26 oz/t) gold and from trace to 77.7 g/t (2.26 oz/t) silver in grab
samples.
5) Horatio Zone with surface grab samples from trace to 2.18 g/t (.063
oz/t) gold and trace to 100g/t (2.90 oz/t) silver;
6) SP (Shaun Parent) Vein, a new discovery on the Del Norte Property, with
surface grab samples from trace to 19.5g/t (0.57 oz/t) gold and trace to
3910g/t (114 oz/t) silver.
Mineral occurrences on the Del Norte property, with the exception of the Crackle and Horatio Zones, are mainly vein type areas of quartz flooding, brecciation and sulphidation focused along a contact between older Hazelton Group volcanic rocks and younger basinal sediments of the Salmon River Formation or Bowser Lake Group. The contact is mainly tectonic but the fault structures are coincident with the stratigraphic contact between these units, possibly due to structural weakness caused by early faulting during the basin initiation. The occurrence of a patchy but intense acid-leach alteration system, stratigraphically beneath the sediment/volcanic contact, may be a source of metals which were then precipitated in the more permeable tectonically disrupted rocks at the contact. The Bullion area, "3 oz" Vein and SP Veins are promising fault associated prospects.

Establishing a continuum at Del Norte between silver and gold-rich vein type mineralization and precious metal-enriched exhalative mineralization typifying the Eskay Creek Deposit remains a priority for the 2006 exploration program.

Harvey Klatt, P.Geo. is the Qualified Person for Sabina Silver Corporation in charge of the 2006 exploration program on the Del Norte property and has reviewed the technical data contained herein and approved its dissemination in this news release. Pioneer Laboratories of Richmond, B.C., an accredited facility, assayed the Del Norte core.

Hackett River

In addition, Sabina continues drilling with 3 drills on its large, 100%-owned silver-zinc Hackett River Project in Nunavut, Canada towards development of an updated 2006 mineral resource estimate.

Note : * conversion of g/t (metric tonnes) x 0.029166 = oz/t (short tons)

Please visit our web site at www.sabinasilver.com where recent pictures of core and surface sample locations will be posted at /Projects/Del Norte.

The foregoing securities have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation or sale would be unlawful.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may," "will," "plan," "expect," "anticipate," "estimate," "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. Sabina does have an ongoing obligation to disclose material information as it becomes available.

The TSX Venture Exchange does not accept responsibility for the accuracy or the adequacy of this release.

Contact Information

  • For further information, please contact:
    Abraham Drost
    P.Geo., President
    309 Court Street South
    Thunder Bay, Ontario
    Phone: 807-766-1799
    Fax: 807-345-0284
    Email: Email Contact